1. 1 2. 2 Submitted to: Md. Abdul Muhith Chowdhury Senior Lecturer Department of Business Administration Leading University, Sylhet 3. Md. Alimuzzaman 1201010249 Mahmudul Hasan 1201010181 Mahmudul Karim 1201010205 Masum Hussain 1201010202 Zakiatunnessa Uma 1201010007 Rabeya Rahman 1201010091 4. Culture: Its the characteristics of a particular group of people defined by everything from language to behavior. Company: It is a voluntary association formed and organized to carry on a business. Values: Values refers to stable life goals that people have, reflecting what is most important to them. Behavior: Behavior is the range of actions and mannerisms made but individuals , organisms or an artificial entities. Organization: an institution or social unit, composed of two or more people for achieving common goal under formal procedure. Across nation: in a global arena crossing the national boundary. IHRM: The process of procuring, allocating and effectively utilising human resources in an international business is called international human resources management (IHRM). 5. Globalization is an important factor that influences organizations that compete for customers with high expectations for performance, quality, and low cost. International movements of goods and services have accelerated exponentially to $7.9 trillion. Trade barriers have decreased with the advent of free trade zones in Europe, North America and Asia, including the European Union (EU), North American Free Trade Agreement (NAFTA), and the Association of Southeast Asian Nations (ASEAN). 6. Organizational and HR principles associated with liberal market economies are as follows: freedom to manage; emphasis on short-term competition; flexible deployment of staff; pay linked to individual performance; training regarded as an overhead. 7. Clearly, there are some powerfully intuitive connections between the cultural stereotypes and orientations theorized by Hall and Hall (1990), Hofstede (2001) and Trompenaars (1993), and observed manifestations of HRM across regions. preferred organizational structures flat/tall, consultative/authoritarian, and so on (power distance); recruitment, whether based on merit or nepotism (achievement v. ascription, high context); whether pay is individually determined (individualism v. collectivism); the level of statutory regulation in employment (uncertainty avoidance); maternity, paternity, childcare provisions, and so on (masculinity v. femininity). 8. A culture refers to a system of shared meaning held by the organizations members that distinguishes the organization from other organizations. It is understood as the customs, beliefs, norms and values that guide the behaviour of the people. It has normative value It is a group phenomenon Passed on from generation to generation. 9. Learned Unconscious Shared Integrate Dynamic Way of life Universal Other forms of culture Dominant culture Subcultures Organizational culture Occupational Culture 10. It has a boundary, defining role that creates a distinction between one organization to others. It conveys a sense of identity for organization members. Culture facilitates the generation of commitment to something larger than ones individual self-interest. It enhances the social system stability. Culture is the social value that helps hold the organizations together. The culture serves us a sense-making and control mechanism that guides and shapes the attitudes and behaviours of employees. Culture enhances the organizational commitment and increases the consistency of employee behaviour. Culture reduces ambiguity among its members. 11. HR activities -procurement, -allocation and -utilization Types of Countries -Home Country -Host Country -Other Countries Types of employee Parent Country Nationals(PCNs) Host Country Nationals(HCNs) Third Country Nationals(TCNs) 12. Parent Country Nationals(PCNs) Host Country Nationals(HCNs) Third Country Nationals(TCNs) Familiarity with home office, goals, practices Familiarity with the situation in host-country Salary & benefit requirements lower than that of PCNs Easy organisational control & coordination Lower hiring costs May be better informed about host country environment Difficulty in adapting to foreign country Difficulty in exercising effective control over the subsidiarys operations Host country govt. may resent hiring TCNs Excessive cost of selecting, training & maintaining expatriates Communication problems with home office personnel May not return to their country after assignment 13. The study of Geert Hofstede presented possible origins as well as consequences for management behaviour. Initially, four dimensions were identified that possessed universal applicability across cultures, then a fifth subsequently being added Power distance Uncertainty avoidance Individualism versus collectivism Masculinity versus femininity Long-term versus short-term orientation 14. 1. Globalisation of Business 2. Effective HRM determinant of success in international business 3. Indirect costs of poor performance in international business very costly 4. Movement to network organisations from traditional hierarchical structures 5. Significant role in implementation & control of strategies 14 15. Key Issues in International HRP Identifying top management potential early Identifying CSF for future international managers Providing developmental opportunities Tracking & maintaining commitment to individuals in international career paths Tying strategic business planning to HRP & vice-versa Dealing with multiple business units while focusing on global & regional strategies 15 16. Ethnocentric Approach Key management positions held by parent-country nationals Appropriate during early phases P&G, Philips Polycentric Approach Host-country nationals hired to manage subsidiaries Parent-country nationals occupy key positions at corporate HQ HUL Geocentric Approach Seeks best people for key jobs, irrespective of nationality Underlying principle of a global corporation Colgate- Palmolive Regiocentric Approach Variation of staffing policy to suit particular geographic areas Provides a 'stepping stone' for a firm wishing to move from an ethnocentric or polycentric approach to a geocentric approach 16 3 categories of employees can be hired parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs) 17. 17 Determining the need for an expatriate Selection Process Pre-assignment training Departure Post-arrival Orientation & Training Crisis & Adjustment Crisis & Failure Repatriation & Adjustment Reassignment Abroad 18. Expatriate Selection Family Reqments Cross-cultural Suitability MNC Reqments Language Country- cultural Reqments Technical Ability Individual Situation Expatriate Selection 19. The work of Trompenaars and Hampden-Turner (1997) serve to supplement Hofstedes study by offering an alternative set of cultural dimensions, and by placing a focus on meanings, or humans interpretations of the world around them. Universalism versus particularism Individualism versus communitarianism Achievement versus ascription Neutral versus affective Specificity versus diffuseness Sequential versus synchronic Inner versus outer directedness 20. Objectives to be achieved Attract qualified & interested employees Facilitate movement of expatriates between subsidiaries Consistent & reasonable relationship between pay levels Cost-effective Problems faced in deciding remuneration package Discrepancies in pay between parent, host & third country nationals Vary compensation based on family situation of expat Remuneration when re-entering parent-country organisation Must accommodate changes in international business environment 20 21. Preparation Physical Relocation Transition Readjustment The activity of bringing the expat back to the home country Can cause re-entry shock or reverse culture shock Reasons Posting period over Childrens education Not happy with overseas assignment Failure to do a good job 21 22. 22 1. Cross Cultural Training 2. Language Training 3. Practical Training 4. Management Development & Strategy 23. 23 Culture shock is a term used to describe the anxiety and feelings (of surprise, disorientation, confusion, etc.) felt when people have to operate within an entirely different cultural or social environment, such as a foreign country. 24. Handling Labour Issues Delegated to foreign subsidiaries Labour relations centralised when inter-subsidiary production integration is present Depends on nationality of ownership of subsidiary More intervention when subsidiary is of strategic importance Union Tactics Strike most common tactic International Trade Secretariats (ITS) Lobbying for restrictive national legislations Intervention of ILO, UNCTAD, EU & OECD Principles of ILO Freedom of associations Right to organise & collectively bargain Abolition of forced labour Non-discrimination in employment 24 25. Culture customs, beliefs, norms & values that guide behaviour of people in a society or passed on from one generation to the next Multiculturalism people from many cultures (countries) interact regularly Benefits Greater creativity & innovation Sensitivity in dealing with foreign customers Possibilities of hiring best talent Super organisational culture Universally acceptable HR policies & practices Functions of IHR manager Possess strong personal identity Have knowledge of beliefs & values of different cultures Display sensitivity Communicate clearly according to the cultural group Cultivate cosmopolitan outlook & attitudes 25 26. Evaluation and reward systems are important mechanisms for implementing strategies Agency theory goal incongruence Direct monitoring of subsidiary managers MNCs overall objectives importance of the subsidiary the cultural distance subsidiary size 27. differentiated use of IHRM functions Use of MNC-wide reward criteria recruitment and selection international experience horizontal rotations use third country nationals subsidiary managers training international management teams performance evaluation and reward systems 28. practical significance Report standard deviations degree of intra-country variation national culture constrains Do not equate a country effect cultural differences Intraclass correlation 29. The findings of this study have reiterated the close link between international strategic management and IHRM. They have shown that the level of input interdependence of overseas subsidiaries, which increases with a move toward ITN currently propagated in literature on international business strategy, influences a number of IHRM functions. co-ordination of MNC units level of a subsidiarys output interdependency different types of resources symmetry between home and host country culture implementing integrated network structures 30. Thanks for Patient Hearing